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Boyd Group president Michael Boyd on American Airlines and U.S. Airways potentially merging to become the world's largest carrier.
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Thanks.
This for your right now it would be ending world.
Biggest airline by traffic with a market cap of ten billion dollars.
American US Airways reportedly close to a merger we are -- by airline analyst Mike Boyd president of the boy group let's first talk about this February 15 deadline might.
Creditors AMR are facing a deadline the board of AMR's facing this deadline is this why we're gonna get this deal.
Do you think on the books before that.
I think so I think it becoming very apparent that.
It needs to move ahead it would be a positive -- certainly for the consumer be a positive thing for the employees going forward.
And that you need new new blood new management the top of AA and I think this would bring it and I think to be a good thing for the -- -- and -- The new CEO according to reports again mrs.
not -- forget and coroner reports Doug Parker would be the new CEO of the company that's according to the journal Tom -- went to -- -- somewhat of -- chairmen may be he's around for a little bet.
Doug Parker right -- go to Ron what would be really a -- he -- a global or travel.
Well couple things one Doug is a visionary.
He sees things the rest of us don't see he thinks things through that's what America needs now -- this committee think they have now.
But don't don't get sued not misled by size of broad authority was very big one time -- didn't do real good.
Alaska Airlines is a small airline does well size isn't the issue with revenue streams and competitive flows and I think it'll improve it they won't fix all the problems but it'll improve it.
You know might know disrespect to our partners over at the Wall Street Journal but I can't help but wonder -- this information is still coming from the pilots union the pilot continuing AMR declared bankruptcy in the beginning last year.
Went directly -- US Airways with out the company's.
Approval or support -- you -- the pilot's union is still behind.
-- reports now that the deal is gonna have most likely happen.
Well the piloting it certainly body weak again interest of full disclosure over the years we've worked with the Allied Pilots Association -- so.
But they see the value in this -- want to move forward.
That the US Airways pilots union does -- so what -- what up we're gonna squabbles or not have squabbles over whether the merger should take place.
I think everybody on the labor side is pretty much agreed we've got to get this done for the future of what will be American Airlines and also US Airways.
Look at the structure this -- -- this -- -- a merger not a buyout AMR's creditors.
Would still hold a big piece of the new.
A company if you well US Airways of our shareholders would be part of this as well at the same time.
We're looking at two airlines that compete already -- 700 cities you guarding a lot of market saturation.
A -- wonderful gonna see -- shut down if you're gonna see layoffs start to kick and if this happens.
No it's not gonna have to where they compete.
We looked at it there's very few markets where it either with a combined carrier has significant formal more market share than one of the other had before the merger.
Let's remember of all these merger -- had the last five years.
Only one.
Has seen.
Material reductions in in service -- that was southwest AirTran -- to communities like Newport News and Sarasota got hit very hard by the by the merger.
Delta northwest didn't -- -- United Continental didn't and that's when won't hit the consumer either.
Are -- Mike Boyd thank you for joining us again -- these reports are coming out I'm sure gonna be calling you very soon -- thank you very perspective from him.
